Barriers to protection insurance & why you should consider it essential

According to an online survey of 2,000 adults by Royal London, half of those surveyed believe life insurance is essential for someone with a mortgage or dependents and yet only 60% of people with a mortgage have life cover.

While 60% of those surveyed with a mortgage have a life insurance policy, just 29% have critical illness cover and 19% have income protection insurance, suggesting that better education is needed to help make people more aware of the benefits of taking out protection.

We believe some kind of protection insurance should be considered essential for anyone who has a mortgage or people who rely on their income – or both. The financial impact of not having cover could be devastating; think about what would happen in your situation if the main breadwinner was unable to work for a long period of time, or was diagnosed with a critical illness. How would you fund your mortgage payments, keep on top of monthly bills or pay for treatment that isn’t available on the NHS?

For less than the cost of a daily cup of takeaway coffee* you can protect yourself and your family and help deal with any consequences that could occur from illness, accident, unemployment or death. That’s why, when we talk to clients about protection, we talk about value, rather than cost.

Overcoming the barriers

The main reasons why people feel they don’t need protection:

Cost

Not seeing the benefit

Not trusting that a provider will pay out

If you’re concerned you’d be wasting money every month because insurance providers don’t pay out, you might be surprised to know that 97.8% of claims were paid in 2017 – a record-breaking £5bn in income protection, critical illness cover and life assurance.

Protection insurance can provide a valuable safety net at a time you need it most. Please get in touch and we can discuss how it could benefit you.

*Quote basis: 35 year-old non-smoker, £250,000 decreasing life assurance and critical illness cover to cover a repayment mortgage, 25 year term, guaranteed premium. Premium of £58.72 per month is equivalent to £1.89 per day based on a 31-day month. Quote sourced via Openwork Select panel of insurers on 15 January 2018. Premiums are subject to an individual’s personal circumstances and medical history.

To discuss your protection insurance options, contact the McGlone & McCabe team on 028 8774 6664 or click here to message us